GMR Airports Share Price Hits Multi-Year High After 15% Monthly Rally: Strong Q2 FY26 Fuels Optimism

GMR Airports’ share price (NSE: GMRAIRPORT) touched ₹105.50 on Friday, rising 2% in intraday trade with heavy buying. Around 26.85 million shares were traded by early afternoon. This comes even as the Sensex was down 0.3%.

Over the past month, the stock has gained 15%, far outperforming the market’s 1% rise. The stock is now close to its highest level since 2007.

Company Turns Profitable After 3 Years

The biggest reason for the rally is GMR Airports’ return to profitability. In Q2FY26, the company reported a profit before tax of ₹103 crore, compared to:

• ₹386 crore loss in Q2FY25
• ₹65 crore loss in Q1FY26

Strong Revenue Growth

Total income rose 45% YoY to ₹3,750 crore, powered by:

• Higher tariffs at Delhi Airport (introduced in April)
• GMR taking over Delhi’s duty-free and cargo operations
• Steady growth at Hyderabad Airport

EBITDA rose 59% YoY to ₹1,530 crore, and margins improved to 53%, up from 49% last year.

Profit After Tax Turns Positive

GMR Airports also reported a PAT of ₹35 crore, compared to:

• ₹429 crore loss in Q2FY25
• ₹137 crore loss in Q1FY26

India’s Aviation Market Growing Rapidly

The company said India is now the 5th largest aviation market, with strong passenger demand. The Mumbai-Delhi route was the 7th busiest globally in 2024, and international airlines are increasing services to India.

Airlines such as Emirates, Etihad, and Malaysian Airlines are seeing strong premium travel demand. IndiGo is expanding into long-haul routes and business class, signalling long-term confidence.

Outbound tourism is also rising, projected to grow at a 12.3% CAGR between 2025 and 2033.

Future Expansion by Airlines

From October 2026, IndiGo will begin daily flights to London and expand business-class services. The airline has also ordered 30 more Airbus A350s, doubling its wide-body fleet.

Expanding Beyond Airports

Along with operating airports, GMR is exploring opportunities in:

• Cargo
• Duty-free
• Car parking
• Food & Beverage
• Other airport services

The firm is also looking at asset-light O&M projects to expand without heavy investments.

GMR has recently taken over duty-free operations at both Delhi (July 28) and Hyderabad (September 10). The financial benefits of these takeovers have started reflecting in Q2, with a bigger impact expected in Q3.

Also Read: JAL Creditors Choose Adani Offer Over Vedanta!

Conclusion

GMR Airports’ strong earnings recovery, tariff gains, and growing air travel demand have pushed the stock to multi-year highs. With the peak travel season ahead and new revenue streams from duty-free and cargo operations, the company appears well-positioned for continued growth—although long-term performance will depend on sustaining air traffic momentum.

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